A 292-room Hilton in Houston shut its doors after years as a hotel; developer Bryan Kang then planned a $40 million conversion of its 200,000 sq ft into housing

Repurposing existing commercial properties has become an increasingly visible method in Houston’s commercial real estate market. Rather than leaving unused buildings vacant, developers are delving into more techniques to offer older buildings new purposes like converting former hotels into residential communities.

One such project involves the former Hilton Houston Galleria at 6780 Southwest Freeway, where Los Angeles-based developer Bryan Kang’s Dos Lagos Asset has filed plans to adapt the former hotel into housing.

Plans to Convert Former Hilton Into Housing

The proposed redevelopment would convert the former 292-room Hilton Houston Galleria into a multifamily residential complex. The filing does not mention how several residential units are planned.

The 13-story building contains around 200,000 square feet, and the conversion has an estimated cost of $40 million.

Dallas-based design firm Huitt Zollars is connected with the project. Construction was anticipated to begin in April, with completion estimated for September 2025.

The redevelopment would offer a new purpose to a property that had earlier functioned as a hotel before gradually becoming vacant.

Bryan Kang’s Move Into Real Estate

Bryan Kang previously served as commissioner of the Los Angeles Department of Transportation from 2012 to 2014, as per the report from the Los Angeles City Council.

After his time in government, Kang moved into real estate. In 2019, he bought an office building in Orange County for $13.4 million, as per Traded LA.

As per California business records, Rhapsody Clothing closed in 2019. Tries to reach Kang for comment were not successful.

Houston’s Hotel-to-Residential Conversion Market

The proposed Hilton conversion arrives as hotel-to-residential redevelopment has become a more active part of Houston’s commercial real estate market.

The city’s hospitality sector has faced post-pandemic pressure, like depressed occupancy rates and loan delinquencies. Trepp ranked Houston’s hotel market as the “nation’s worst” previous year.

A New Purpose for a Vacant Property

The planned redevelopment of the former Hilton Houston Galleria features the changing possibilities for properties that have lost their original commercial use.

Bryan Kang’s Dos Lagos Asset has proposed with the investment $40 million to convert the 200,000-square-foot building into multifamily housing. The project is linked to Dallas-based design firm Huitt Zollars, with construction anticipated to begin in April and completion projected for September 2025.

The redevelopment arrives after the hotel’s closure, vacancy, and 2022 foreclosure. Alongside other hotel-to-residential projects in Houston, the proposal emphasizes how former hospitality properties are being regarded for fresh residential uses.

Source: The Real Deal